Canadians are by far the largest international purchasers of Sarasota real estate. Additionally, the vast majority of Canadians pay cash for their Sarasota property. The reasons are threefold. Firstly, the lending criteria is very strict for Canadians. Whereas American citizen’s commonly obtain loans for 80% to 90% of the properties value, Canadians and other international buyers are only offered loans in the 70% to 75% “loan to value” range. And in the new lending climate, lenders require an inordinate amount of financial and personal information that, quite frankly, simply turn off Canadian buyers. Secondly, the Canadian real estate market never suffered a property value downturn, similar to the USA. In fact, in the big cities, property values have continued to appreciate. Thanks to this additional equity, Canadians have had the luxury of obtaining lines of credit on their principle residences that can, in turn, be used to fund a Sarasota purchase. And finally, add in the fact that cash buyers pay less than those who purchase with a mortgage ( see our blog ” Why do cash buyers pay less ?”) and it’s easy to see why the vast majority of Canadian’s opt to bypass the mortgage process when purchasing in Florida.
We love working with Canadians ! Call us toll free anytime with your questions. 1888-755-2637
Patrick Doherty 1801 Main St Sarasota, FL 34236